Reference no: EM132903364

Data for the December manufacturing cost of Alyson Company, a VAT registered company is as follows:

Variable cost:

3 labor hours (at ?3 per hour) and
1 kilogram of raw material X (at ?2.24 per kg including VAT)

Fixed cost:

Budgeted fixed manufacturing cost ?100,000

Normal expected production (units) 100,000

Problem 1: Assume the actual production is 100,000 units, how much should the finished goods be recorded?

a. ?1,224,000

b. ?1,124,000

c. ?1,200,000

d. ?600,000

Problem 2: Assume the actual production is 120,000 units, how much should the finished goods be recorded?

a. ?1,444,000

b. ?1,403,333

c. ?1,420,000

d. ?1,200,000

Problem 3: Assume the actual production is 80,000 units, how much should the finished goods be recorded?

a. ?1,004,000

b. ?963,333

c. ?980,000

d. ?960,000